Fujitsu to Migrate All Internal Systems to a New Cloud Platform

Reducing TCO by 35 billion yen and further garnering its expertise in large-scale systems migration to the cloud

Fujitsu Limited

Tokyo, February 18, 2015

Fujitsu today announced that it will migrate all internal systems to a new cloud platform, underlining the benefits of cloud computing as a more efficient, flexible and cost-effective solution even for the largest global companies. It will consist of approximately 640 large-scale and complex systems across some 13,000 servers globally that encompass a mixture of legacy and cutting-edge systems. The transition will proceed in stages starting in February 2015 and is scheduled to be completed within five years with an expected reduction in total cost of ownership (TCO) of 35 billion yen.

Fujitsu has also decided to use the expertise gained in this transition process to develop reference models for large-scale customers seeking to leverage the advantages of cloud computing in reducing costs, increasing efficiency and improving flexibility against a landscape of constant and accelerating business environment changes and increased competition.

The new cloud platform which Fujitsu's systems will be migrated to is being developed by Fujitsu based on OpenStack software. Along with migration of its internal systems, Fujitsu will continue developing new features while performing validation with customers, and plans to begin offering new services during fiscal 2015 starting with customers in Japan.

Background

In recent years, with the advance of globalization and the diversification of market needs, the business environment has grown more complex, and companies need systems that can adapt to sudden changes in the business environment and that operate more efficiently. With that in mind, Fujitsu made the decision to enhance its existing systems and innovate by migrating all of its internal systems worldwide to a new cloud platform.

About the Internal System Upgrade

For ICT systems, Fujitsu has laid out three general objectives: make them contribute to business; make more efficient systems; and make its internal deployments serve as reference models for its customers. Based on these objectives, the company is migrating all of the Fujitsu Group's operations to a new cloud platform.

The skills and know-how developed in migrating to the new cloud platform and operating it will be used as reference models for proposing solutions and building and operating systems for customers.
The Fujitsu Group's internal systems include CRM/sales-support systems, SCM/ECM systems, corporate systems, such as for human resources and accounting, and uniform systems that support company-wide information-sharing and communication, such as a global communications platform(1).
The migration to the new cloud platform will encompass all of these systems, and will be undertaken in stages over the next five years. The first stage of the migration will begin in February with two corporate systems. Once the transition of all internal systems is complete, the company expects to reduce TCO by 35 billion yen over five years.

Overview of the New System

This will be an all-encompassing upgrade that covers all of the Fujitsu Group's internal systems worldwide, which will be migrated to a new cloud platform based on OpenStack software that is currently under development. This will be the first time that the Fujitsu Group is attempting to migrate all of its large-scale, complex systems, from legacy systems to cutting-edge systems.

1. Number of systems: approx. 640 systems operating in the Fujitsu Group worldwide

Japan: approximately 450 systems (approx. 8,000 servers)

Outside Japan: approximately 190 systems (approx. 5,000 servers)

2. Transition time frame: 5 years beginning February 2015

3. TCO savings: 35 billion yen over five years

Among the systems that will be upgraded in this process is a global communications platform that was deigned to make work tasks more efficient for 170,000 employees across roughly 540 group companies. This global communications platform was deployed in phases beginning in April 2012, and has already accelerated business operations. In addition, by 2013, it had cut group-wide expenses related to system operations and business trips by 30% compared to 2010 levels. Moreover, the expertise that the company gained through its internal implementation was used as a reference model for proposing, building, and operating similar systems for customers, and now roughly 150 companies employing over one million people have deployed such systems.

The new cloud services platform will be used to quickly build systems that, by employing the latest technologies, such as mobile technologies and big data, can respond quickly to a changing business environment. The expertise, tools, and environments developed in this process will be offered to customers as reference models.

[1] Global communications platform

A system that, by integrating information and communications tools, including email, schedule management, presence management, and teleconferencing, facilitates smooth communications among group companies.

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company, offering a full range of technology products, solutions, and services. Approximately 159,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.8 trillion yen (US$40 billion) for the fiscal year ended March 31, 2015. For more information, please see http://www.fujitsu.com.